k turner.pdf

8/19/2019 K Turner.pdf

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START-UP BUSINESS PLAN EVENT

Bedford High School Ohio

Bedford High School

481 Northfield Rd

Bedford, OH 44146

Kameren Turner

2 March 2016


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I. Executive summary

Flare Financial is a financial adviser for professional athletes. Our company

headquarters are located in Chicago, Illinois. We plan to expand and have multiple

buildings around the country in the major commerce centers such as Los Angeles,

New York City, Miami, Seattle, and Dallas. My employees will have degrees in

finance from competitive schools. I only want to hire those who have an expertise

in how to manage finances.

My business will provide financial advice for athletes going from college to

professional sports. We not only would be working with athletes going to the

National Football League, but also, athletes going to the National Basketball

Association and Major League Baseball. We will partner with the NFL, NBA, and

MLB to help promote and get in contact with our customers. The goal of my

company is to prevent athletes from wasting all of their money. Research shows

that 78% of athletes in the NFL were poor or struggling financially after two years

of retirement and within five years of retirement, 60% of NBA players were in the

same predicament.

We will teach our clients how to budget their money and how to invest it in

other things that will make them money. Our clients will be helped developing a

plan for retirement at a young age. That will lower the rate of players struggling

after retirement. My company believes those numbers are way too high given these

athletes make so much money. There are 1,696 active players in the NFL, 496

active NBA players, and 224 active MLB players, so the market is decent in size

and has potential to provide a large profit for my company.


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II. Problem

There are 3 challenges that my business will be solving:

1) The percentage of athletes that are struggling or financially poor after they

retire from their respective sports. For NFL athletes, the percentage is 78%.

For NBA athletes, the percentage is 60%.

2) Lack of knowledge of how to make proper investments that will end up

making them money instead of losing money. Many of these athletes like to

go out and buy all these cars as soon as they get their contracts. In an article

called “How to blow $5 million” written by Tom Farrey, he gives an

example about a player that “opened his wallet for his local Mercedes and

Lexus dealers” and spent $40,000 dollars at a furniture store. He did all of

this before signing his contract with the Baltimore Ravens.

3) My company will teach athletes how to budget their money when they get

these large contracts. When an eighteen year old signs a contract worth

millions, they tend to spend a lot of their money because they likely have not

had that much money before. My company will be able to help them budget

their money out and help them make proper decisions when it comes to what

they spend it on.

III. Customer Segments

List of attributes of our target market

● Male

● 18-25 years of age

● Athlete making the transition from college to professional sports


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● Lacks knowledge of how to manage their money correctly

● Plays football, basketball, or baseball

● Came from a family that was not wealthy

IV. Unique Value Proposition

What makes my business unique is that it doesn’t just advise the client on

the proper financial decisions, it teaches them out to budget and how certain

investments will make them money. My business actually cares about making sure

these athletes never have to struggle financially during or after they are done

playing. We know that it isn’t just about telling them what to do, it’s about them

gaining the knowledge. Our services with our clients doesn’t stop when the athlete

is retired or maybe 5 years after they retire. Our service will be provided until our

client no longer believes we can help them with their finances.

V. Solutions

3 features of my service:

1. Employees will have degrees in finance and/or sports management/industry

from competitive schools. We want our clients to have the top people

advising and teaching these athletes.

2. We will continue business with these athletes even after they stop playing

sports. My company will develop good relationships with our clients, so they

will want to work with us even after they retire.


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3. There will be service lines that our clients can contact. Before a purchase or

a financial opportunity, my clients can contact an agent and consult with

them about the proper decisions for themselves.

VI. Channels

My company will eventually have branches of my business in many cities

such as New York, Miami, Dallas, Seattle, and Los Angeles. We will reach out to

these athletes and explain to them why they need us as an advisor for them. My

company will promote ourselves to these players by telling them what makes us

unique, which is that we care about their wellbeing (finance, retirement planning,

transitional living). We will also have some employees that will meet up with the

client at their house or at a public place. My business will be very flexible to better

meet the needs of our client. Each client can contact a financial advisor who they

are capable of consulting with before a big purchase or opportunity.

VII. Revenue Streams

Our clients will be paying for our services after every month. Their

payments will cover all of the services we provide for them. The customer lifetime

value for about a 3 year period will be about $9,600. Each client will pay $3,200

each year over a monthly period, after they make an initial payment of $200 when

deciding to work with us. Charging our clients at this price will help build a profit

while also paying for all expenses and paychecks.

Years # ofcustomers

# ofemployees

(including

Revenue Expensesand salaries

GrossMargin


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me)

After year

1

100 5 960,000 895,000 6.77%

After year

2

225 20 2,160,000 1,880,000 12.96%

After year

3

350 30 3,360,000 2,680,000 20.23%

VIII. Cost Structure

The cost of the office space that will be purchased is $295,000 and after

doing some research, all the utilities per month are about $15,000. Utilities include

electricity, water, gas, and Internet/phone services. My employees will make

$80,000 and I will be making $100,000. The average agent makes between 11,000

and 600,000 per player. The cost to reach out to these players is included in the

Internet and phone services because we will reach out to these athletes via the

Internet or phone calls.

IX. Key Metrics

● Number of clients: The number of clients that we have will help us

determine how successful that our business is. The more clients that we have

will show us that what we are doing is truly helping these athletes. This will

be measured after every month.

● Client feedback: After every month, we will ask all of our customers to

give us feedback on our services.

X. Competitive Advantage


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Our service will not be easily copied or bought is because my services do

not stop when my client retires. My services will continue from the time they leave

college to go to professional sports and even past retirement. That is one thing

makes us unique along with the fact that we teach our clients. We don’t do what

we do to just get money. Another thing that makes my company unique is that we

actually care about our customers. My company is not just worried about the

money that will be made. We do not want these athletes to be struggling

financially. Our customers will become better will managing their finances. That is

what my company will pride itself on: Our customers gaining knowledge My

company also works with athletes from the three major sports in America. Most

companies work with just one of them.

XI. Conclusion

My company, Flare Financial, is a financial advisory for professional

athletes going from college to professional sports. We not only work with these

athletes when they enter their respective leagues, but we also work with them well

after retirement. My company will be located in Chicago, Illinois. My company is

fulfilling a serious need. Too many athletes are becoming financially poor after a

few years after retirement. This need will help my company generate a profit after

the first year. I would like to make a request of $300,000 and to be part owner and

own 20%.

MK NOTES:


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Don’t be offended, but your business is not all that different than what is currently

on the market. You need think about how you are going to truly bring value to

your clients. How can you be truly different??

You are also missing huge data points:

(1) how big is the market?

(2) can you talk anecdotally about any of the current NFL or NBA draftees?

(3) how will your staff break through to reach these athletes considering your the

David to the Goliath?

(4) what type of athlete will you target?

(5) how will you market your business?

(6) the name is not very memorable… i would choose something else that will

stick out to the judge.

(7) you don’t have any costing information… how much are you going to spend on

rent?

(8) wherever you can, you want to bring in data from other sources and state

“according to…”

(9) will you partner with former athletes who went broke?

(10) how will you help athletes integrate into post-game life?

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